Wix.com (WIX) ended the recent trading session at $86.83, demonstrating a -3.49% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.43% for the day. On the other hand, the Dow registered a loss of 0.37%, and the technology-centric Nasdaq decreased by 0.94%.
Coming into today, shares of the cloud-based web development company had lost 13.4% in the past month. In that same time, the Computer and Technology sector gained 1.51%, while the S&P 500 gained 0.89%.
Market participants will be closely following the financial results of Wix.com in its upcoming release. The company is predicted to post an EPS of $1.36, indicating a 29.53% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $528.03 million, up 14.68% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.76 per share and a revenue of $2 billion, signifying shifts of +5.79% and 0%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Wixcom. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.53% higher. Wix.com presently features a Zacks Rank of #4 (Sell).
In the context of valuation, Wix.com is at present trading with a Forward P/E ratio of 13.81. Its industry sports an average Forward P/E of 17.04, so one might conclude that Wix.com is trading at a discount comparatively.
Investors should also note that WIX has a PEG ratio of 0.74 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computers - IT Services was holding an average PEG ratio of 1.35 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 88, positioning it in the top 36% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Wix.com Ltd. (WIX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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